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Updated Rumours of changes to the Xbox 360 line-up were true. Microsoft has confirmed it will increase the Arcade model’s price, phase out the Pro and slash the Elite's price.

From tomorrow, the Xbox 360 Arcade’s price will rise by £30 to £160 - it's staying at $199 in the US – but you won’t get any more for your money.

Conversely, the Elite will represent better value for money, according to Microsoft, because its price will drop by £50/$100 to £200/$300. It comes with a 120GB hard drive - the Arcade comes with a 256MB memory card. The Elite also has an HDMI port.

It has been claimed that the Elite will no longer ship with an HDMI cable, it’s worth noting, though Microsoft has confirmed this.

Microsoft hasn’t explained why it has decided to drop the Pro, which comes with a 60GB detachable HDD. It's not known for how much longer UK consumers will still be able to buy the machine.

Update

Microsoft has since said that the Arcade's price increase is designed to "offset exchange rate fluctuations and changes in local market conditions". ®